Cerrado Gold Inc. reported a sharp increase in profitability for the second quarter of 2026, with net income rising to $9.2 million from $1.2 million in the same period last year. The Toronto-listed miner posted adjusted earnings of $0.07 per share and revenue of $64.56 million, up from $421.75 million in the prior 12 months, an 11% year-over-year increase.
Gold-equivalent production reached 15,415 ounces in Q2 2026, a 35% increase from 11,437 ounces in Q2 2025, driven by higher output from heap leach and carbon-in-leach operations. All-in sustaining costs rose 7.4% to $1,933 per ounce, though management reiterated a target of bringing costs closer to $1,800 per ounce. The company maintained its full-year 2026 production guidance of 50,000 to 60,000 ounces, with executives noting progress toward the upper end of the range.
Cash and cash equivalents totaled $25.3 million at quarter-end, while EBITDA reached $28.2 million, near record levels. The stock advanced 7.02% in after-hours trading to $2.44, nearing its 52-week high of $2.48 and well above the 52-week low of $0.85.
Operations at Cerrado’s primary asset, the Mina Dominga project in Argentina, continued to expand, with surface and underground exploration programs totaling 70,000 meters of drilling. An updated Preliminary Economic Assessment and mineral resource estimate, incorporating recent acquisitions, is scheduled for Q1 2027. The company’s Lagoa Salgada project in Portugal secured a court injunction in June 2026 suspending an unfavorable environmental permitting opinion, though principal legal proceedings remain pending. The Mont Sorcier iron project in Canada is progressing toward a Bankable Feasibility Study expected in the first half of 2027.
Cerrado remains unhedged on gold sales, positioning it to benefit from elevated prices but exposing it to downside risk if prices decline. Argentina’s 30% annualized inflation and labor cost pressures, which account for roughly 60% of production expenses, continue to pose challenges despite operational improvements.
